The second oil crisisPig receiver explodes

New tax treaty

person by Trude Meland, Norwegian Petroleum Museum
A new tax treaty was agreed between the UK and Norway in 1979, which included provisions concerning Norwegian personnel working on the UKCS. This agreement had direct consequences for employees on Frigg, which had three platforms on the UK side and two in the Norwegian sector.
— "More will share the tax cookie". Facsimile from Rogalands Avis 26.04.1979
© Norsk Oljemuseum

In addition, two of the British installations and one Norwegian were linked together by bridges. That made it difficult to determine who was employed on which side. Most people worked on both sectors. Personnel on the free-standing platforms also commuted between the sides. Elf deducted Norwegian tax from everyone, which amounted to a lot more than British tax. Foreigners working in the UK had 50 per cent of their pay exempted from taxation, which amounted to many thousands of kroner for Frigg personnel. Under the new treaty, everyone working on the British side of the field was liable to UK tax.

After a good deal of discussion, Elf and the unions reached agreement that everyone who had the opportunity to do so would alternate between the various platforms. This allowed as many as possible to benefit from the lower British tax rate. The most normal arrangement involved spending two-thirds of the time on the UK side and one-third on the Norwegian.

The second oil crisisPig receiver explodes
Published April 3, 2018   •   Updated June 30, 2020
© Norsk Oljemuseum
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